EOS Price Watch: Short-Term and Long-Term Channels

EOS price is finding support at the bottom of the long-term ascending channel on the daily chart.

This lines up with the bottom of a short-term falling channel, so a test of this resistance is due.

If the nearby resistance levels are broken, EOS price could gain more upside traction to the longer-term channel top.

EOS bounced off the short-term and long-term channel support and is on its way to test the nearby resistance levels.

Technical Indicators Signals

The 100 SMA is still above the longer-term 200 SMA on this time frame to indicate that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. However, the gap has narrowed enough to signal that a bearish crossover might be a possibility.

For now, price is making its way up to the top of the short-term descending channel, which is close to the 38.2% to 50% Fibonacci retracement levels. These are also spanned by the moving averages dynamic inflection points.

If these resistance levels hold, EOS might make another test of the channel bottom or even break lower. However, RSI is pointing up on this time frame to show that bullish pressure remains in play. Stochastic is also on the move up so EOS price could follow suit while buyers have the upper hand.

EOSUSD Chart from TradingView

Market Factors

Cryptocurrencies are holding on to their gains so far, and it helps that there have been no negative industry updates yet. Optimism that the industry could regain better footing during the second half of the year appears to be driving the rallies, although some think that it is just a dead cat bounce or profit-taking from the earlier slide.

The dollar faces a couple of major event risks this week, namely the FOMC minutes and NFP release. If these weigh on Fed tightening expectations, EOS and its peers could be poised to take advantage.